On the evening of May 4, Suzhou Hycan Holdings Co.Ltd(002787) , Anfu Ce Link Limited(300787) , Dongwang times, Shanghai Weaver Network Co.Ltd(603039) , Enc Digital Technology Co.Ltd(603869) , Zhejiang Rongsheng Environmental Protection Paper Joint Stock Co.Ltd(603165) , and other A-share companies disclosed share repurchase plans. Some companies such as Dongwang times clearly pointed out that the purpose of share repurchase is to safeguard the company’s value and shareholders’ rights and interests.
several companies disclose repurchase plans
Some listed companies set a short repurchase period. Taking Suzhou Hycan Holdings Co.Ltd(002787) as an example, the repurchase plan disclosed by the company on May 4 shows that under the comprehensive consideration of the company’s financial status, operation and future profitability, the total amount of share repurchase funds is not less than 40 million yuan (inclusive) and not more than 80 million yuan (inclusive). The implementation period of share repurchase shall not exceed 3 months from the date when the board of directors deliberates and approves the share repurchase plan. According to the data, the stock price of Suzhou Hycan Holdings Co.Ltd(002787) secondary market fell by 19.08% in April.
From the perspective of repurchase purpose, market value management, equity incentive plan and employee stock ownership plan account for a relatively high proportion. Some listed companies have multiple purposes.
Zhejiang Rongsheng Environmental Protection Paper Joint Stock Co.Ltd(603165) 5 the repurchase report disclosed on May 4 shows that the company plans to use its own funds to repurchase company shares of no less than 100 million yuan and no more than 200 million yuan. The repurchased shares will be used for the implementation of employee stock ownership plan or equity incentive plan by the company’s management and core backbone, or the conversion of corporate bonds issued by listed companies that can be converted into shares. If the repurchased shares are not used within 36 months after the implementation of stock repurchase, the unused repurchased shares will be cancelled. The term of share repurchase shall be within 12 months from the date when the company’s board of directors deliberates and approves the share repurchase plan.
Enc Digital Technology Co.Ltd(603869) disclosed repo report shows that based on the confidence in the company’s future development prospects and the recognition of its internal investment value, in order to safeguard the interests of investors, enhance investors’ investment confidence in the company, further improve the company’s long-term incentive mechanism, fully mobilize the enthusiasm of the company’s middle and senior managers, core and backbone personnel, and promote the long-term development of the company, The company will buy back 50 million to 100 million yuan of company shares with its own funds. The repurchased shares will be used for equity incentive. If the company fails to implement the equity incentive plan within three years, or the relevant shares for equity incentive are not granted within three years, the shares repurchased by the company will be cancelled according to law. The specific method shall be determined in accordance with the provisions of relevant laws and regulations.
major shareholders plan to increase their holdings by a large amount
In addition to the above listed companies that issued repurchase plans, some companies disclosed plans to increase the holdings of important shareholders.
Saic Motor Corporation Limited(600104) 5 announced on the evening of May 4 that SAIC, the controlling shareholder of the company, based on its confidence in the company’s future development prospects and recognition of the company’s long-term investment value, plans to increase its A-share holdings with its own funds in the way allowed by Shanghai Stock Exchange within six months from May 5, 2022. The amount of shares to be increased is not less than RMB 1.6 billion and not more than RMB 3.2 billion. There is no price range for this increase. The controlling shareholders will choose the opportunity to implement the share increase plan within the implementation period.
Some listed companies made a combination of “repurchase + increase in holdings by important shareholders”.
Taking Shanghai Weaver Network Co.Ltd(603039) as an example, the company announced on the evening of May 4 that the controlling shareholder Wei Lidong plans to increase the company’s shares with its own funds within 6 months from May 5, 2022. The proposed increase price is no more than 60 yuan / share, and the proposed increase amount is no less than 30 million yuan and no more than 50 million yuan. The fluctuation of the company’s share price may lead to the uncertainty of the specific implementation time and price of weilidong’s shareholding increase plan. Before the implementation of the shareholding increase plan, Wei Lidong and Wei Jinkun, the person acting in concert, held a total of 51.18% of the company’s shares.
On the same day, Shanghai Weaver Network Co.Ltd(603039) issued an announcement on the share repurchase scheme by means of centralized bidding transaction. The company plans to buy back the company’s shares no less than 120 million yuan (inclusive) and no more than 200 million yuan (inclusive) within 6 months from the date when the board of directors deliberates and approves the share repurchase plan.
Shanghai Weaver Network Co.Ltd(603039) according to the previous announcement, Tianjian Certified Public Accountants (special general partnership) issued an unqualified audit report with emphasis on the financial report of the company in 2021. The audit institution believes that Shanghai Weaver Network Co.Ltd(603039) company and its subsidiaries increased capital to genyan network in 2018 and 2019. Genyan network is a company controlled by Wei Lidong, the controlling shareholder, actual controller and chairman of Shanghai Weaver Network Co.Ltd(603039) company through related natural persons; In 2021, Shanghai Weaver Network Co.Ltd(603039) company transferred real estate to director, senior manager Wang Chenzhi and senior manager Sui Qing, and neither fulfilled the decision-making procedures of related party transactions nor made timely information disclosure.
